[net.politics.theory] Consumer protection and libertarianism

radford@calgary.UUCP (Radford Neal) (03/02/85)

> > Get rid of consumer protection?  How silly.  Why not get rid of protection
> > against murder and theft as well?  There's no ethical difference between
> > poking a gun in someone's ribs and taking their money, and deceiving them
> > about the nature of their own actions for personal profit. 
> 
> Wrong... The point is that consumer protection can be done by private
> industry, whereas law enforcement can't. (Or at least I think so.) All
> you need to do to protect people against bad products it to test a lot
> of products and put out a newsletter describing your findings....

Speaking as someone who calls himself a libertarian, I think this response
is neither correct nor in accordance with general libertarian views (of
course, I didn't see the original item; maybe the poster is well aware of
the later).

Selling products which are falsely represented is a crime known as fraud.
I see it as ethically equivalent to theft, in that the buyer transfers
ownership of wealth to the seller *conditionally* on the seller delivering
the advertised product. This suffices to at least get your money back; and
if the product has caused you harm I think one can also justify further 
damages.

In a minimal government libertarian state (I'll ignore the question of
whether you need a state at all...), the police would enforce this law
just as they enforce laws against murder, etc. I.e. they would investigate
and lay charges when people laid a complaint against someone. The police
*wouldn't* go around testing products, etc., just as they don't go around
excavating random ditches looking for bodies of murder victims or 
examining psychological profiles of citizens to see which are likely to
commit murder.

There is a role for private product evaluations, especially in the hazier
realms of reliability, relative functionality, etc. where there is no
fraud (necessarily) but rather different engineering tradeoffs. There has
to be a law-enforcement basis however, else how do you deal with, say,
a company which fakes demonstrations for the product evaluation people, or
knowingly delivers products with hazardous defects which are unlikely
to be revealed by a short evaluation?

     Radford Neal
     The University of Calgary